@Phil Bullock It sounds like the appraisal needed a "1007" supplemental report which gives market value for rental income.

If you're holding your license to supplement your investment businesses, find an office where you will have to pay less fees/commissions. possibly some investor friendly local office, that will not make you jump through the hoops to do your business.

Furthermore, he picks retired people on social security to supplement their incomes since they won't have the need to scam you.

I would suggest hiring an attorney that specializes in real estate investing to draft the supplemental language you need.  

Short and sweet as @Steve Rozenberg suggested and no need to explain why as @Nathan G. explained.I too have never had someone come back to ask why and that is because like @ John Thedford, I do a supplemental application package that details the qualification criteria (being very careful not to show anything that could be misconstrued as discrimination) upfront.That makes my life so much easier should one come back and want to know why.I work to keep it even across the board and if one does not meet the criteria they just do not meet the criteria.Application fee is also non-refundable, as it covers the screening costs and they are made aware of that in the add and supplemental package.

Especially since you like listening to podcasts:1) Start listening to the "Super Agents Live" podcast by Toby Salgado; great stuff in there to work as a Real Estate Agent.2) Start listening to a lot of audible books to supplement you podcasting. 

As a supplemental income I am thinking of building a studio over garage and renting it out as a long term rental or through Airbnb.My questions are: Would it make more sense to build entire second floor vs building a studio over garage? 

They do not have deep pockets to supplement a tenants rent or to buy cash flow with their own money. 

That's where something like real estate investing can supplement.

Do you believe it will be best to “purchase” the property from my parents in order to supplement their loan from a financial institution?